SYDNEY’S RENTAL CRISIS CONTINUES TO Climb

Sydney continues to experience a long period of severe rental crisis as rent prices continue to increase and show no signs of slowing down. Renters in Sydney are facing unaffordable rents. 

1. Current housing rental situation in Sydney

Many studies and reports show that house rental prices this year have not increased as rapidly as last year. However, rental prices are still very high and show no signs of cooling down.

In particular, Domain’s rental report, released on Thursday, shows that renters in the Sydney region are paying an average of AUD720/week for houses and AUD680/week for apartments.

This shows that housing levels have increased by 70 AUD and apartments increased by 130 AUD compared to the same period last year.

But, it is also the above data that alarms the fact that this city is facing a vacancy rate that has dropped to a record level ever, only 0.9%. This becomes no small challenge for renters.

Nicola Powell, director of research and economics at Domain, said the numbers were worrying for renters, especially in the Sydney region.

“This is an unprecedented period of rent increases that the city has faced,” Ms. Powell said.

But despite rising rental prices, Ms Powell added that the slow increase in prices was a clear sign that Sydney tenants were reaching the limit of being able to pay more.

2. Pressure on renters in Sydney

Given the unfavorable actual situation, Ms. Powell said that even at current rental prices, tenants are expected to be under pressure for a long time.

“Overall, we may continue to see rents increase, but I think they will not increase at the extreme rate we saw earlier this year and into 2022.”

New South Wales Premier Chris Minns said it would take some time to ease the pressure on tenants

“In the short term it is impossible to solve this problem, but according to the plan, if we meet the housing target within the next four or five years, then we can reduce pressure on the rental market,” Mr Minns said.

Leo Patterson Ross, chief executive of the New South Wales Tenants’ Union, said the state government needed to take immediate action.

“Implementing the proposed plan without direct intervention from the government is very difficult. The increase in rent is not really sustainable. We understand the problems tenants face, which is no longer being able to pay.” Mr. Patterson Ross commented.

The government needs to take more measures to change the current situation.

“We can also consider short-term rentals of vacant, undeveloped homes to bring the market back quickly.”

Additionally, Ms. Powell stated that tenants are facing a long-term pressure if this situation continues.

Above is the latest news about the rental situation in Sydney. To update more about Australian real estate information, you can contact:

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